1. 1
Persuasion and Internet
Advertising
David Rodnitzky – Founder and CEO

2. 3Q Digital Overview
Types of Online Advertising
Influencing Behavior Online
Tools to Measure Behavior
Deep Dive – Alpha Beta Process
2

3. 3
About 3Q Digital
• Founded 2008 as PPC Associates in a coffee shop
• Offices in San Mateo, Chicago, San Diego, & San Francisco
• 80 employees
• 80 clients
• 95% annual growth rate since inception without sales!
• $220M+ annual media spend under management
• Our Core Principles:
“Don’t work with jerks”
Over-communicate, over-deliver
Be proactive, not reactive
Optimize long-term relationships, not short-term profit

4. 4
We Provide Integrated Online Marketing
SEM
Social
Display Mobile
SEO

5. 3Q Digital Overview
Types of Online Advertising
Influencing Behavior Online
Tools to Measure Behavior
Deep Dive – Alpha Beta Process
5

6. 6
Branding

7. 7
Demand Generation - Display
Key Metrics
• Click-through rate
• View-through
conversions
• Click-through
conversions
• Goal is “Distraction”
• Good resource:
moat.com

8. 8
Demand Generation - Display

9. 9
Demand Generation - Social
Key Metrics
• Likes/follows
• Virality coefficient
• ROI?
• Goal is
“Interaction”
• Good resource:
optimalsocial.com/
portfolios

10. 10
Demand Generation - Social

11. 11
Demand Generation - Video
Key Metrics
• Views
• Clicks
• ROI?
• Goal is
“Engagement”
• Good resource:
http://www.adwee
k.com/videowatch

12. 12
Demand Generation – Native Advertising
Key Metrics
• Clicks
• CPC
• ROI?
• Goal is “Clicks and
Confusion?”

13. 13
Demand Fulfillment – Search Engine Marketing
Key Metrics
• Conversion Rate
• ROI or ROAS
• Goal is Profit!
• Resource:
SpyFu.com or
SEMRush.com

14. 14
Demand Fulfillment – Search Engine
Optimization
Key Metrics
• Conversion Rate
• ROI or ROAS
• Goal is Clicks and
Profit
• Resource: moz.com

15. 15
Demand Fulfillment –
Affiliate Marketing/Lead Gen
Key Metrics
• Revenue Per Click
• Earnings per
Thousand
Impressions (eCPM)
• Goal is Profit
• Resource: cj.com,
affiliatesummit.com,
leadscon.com

16. 16
Demand Fulfillment – Retargeting
Key Metrics
• Conversion Rate
• Attributed Revenue
• Goal is to Close
Incomplete Funnels
• Resource:
adroll.com,
adexchanger.com

17. 3Q Digital Overview
Types of Online Advertising
Influencing Online Behavior
Tools to Measure Behavior
Deep Dive – Alpha Beta Process
17

18. 18
Overview – 7 Habits of Highly Effective Online
Marketing
Key Persuasion
Influencers
• Ad Text
• Landing Pages
• Targeting
• Source:
http://3qdigital.co
m/how-we-
think/#whitepapers
Bid
Management
Ad Text
Optimization
Keyword
Selection
Landing Page
Optimization
Channel
Selection
Account
Structure
Targeting

19. 19
Ad Text
• Call to action (What do you want them to do?)

20. 20
Ad Text
• Four human emotions
–Fear
–Greed
–Exclusivity
–Vanity

21. 21
Ad Text
• Ad Text Should Target the Query – Answer a Question

22. 22
Ad Text
• Test, test, test – CTR X
Conv. Rate
Source: http://www.amazon.com/Direct-Mail-Copy-That-Sells

23. 23
Landing Pages – Call to Action
• Strong Call-to-Action

24. 24
Landing Pages – Benefits Not Features

25. 25
Landing Pages – Important Stuff Above the Fold

26. 26
Landing Pages – Less is More

27. 27
Landing Pages – Escalation of Commitment

28. 28
Landing Pages – Credibility Matters

29. 29
Landing Pages – Avoid Distraction & Anxiety

30. 30
Case Study – WrinkleCream.pro

31. 31
Regressive Data Analysis – Day Parting

32. 32
Regressive Data Analysis – Geography

33. 33
Regressive Data Analysis – Device/Carrier

34. 34
Regressive Data Analysis –
Psycho/Demographics

35. 35
Regressive Data Analysis – Placement

36. 36
Regressive Data Analysis – Query

37. 3Q Digital Overview
Types of Online Advertising
Influencing Online Behavior
Tools to Measure Behavior
Deep Dive – Alpha Beta Process
37

38. We Use Attribution to Go Beyond the Last Click

39. Attribution Includes Offline Influencers Like TV
Dynamic
Retargeting
campaign
CSE
Runs search
comparing
phones and
buys product
Clicks on ad
because
friend likes
brand
Searches for
brand after
TV
commercial
and again
following
retargeting ad
First sees TV
commercial
TV Display Search Social
Lifetime
Value

40. Landing Page Testing

41. Ad Text Testing - BoostCTR

42. Demographics Analysis

43. Media Planning

44. 3Q Digital Overview
Types of Online Advertising
Influencing Online Behavior
Tools to Measure Behavior
Deep Dive – Alpha Beta Process
44

45.  Improper keyword selection and match type
costs advertisers millions annually
 Account structure mistakes also results in
unnecessary cost
 The Alpha-Beta process and structure will
help you identify and optimize winners and
exclude losers = more profit!
Executive Summary

46.  A keyword is a word or a phrase that a
marketer buys on Google
 A query is a word or phrase that a user
types into Google
 Google matches keywords to relevant
queries
Keywords vs. Queries – A
Crucial Distinction
Keyword
Query
Query
Query
Query
Query
Query

47. Keywords vs. Queries - A
Crucial Distinction
Queries
Keyword

48. A Quick Way to Measure Query
Quality
 The Lin-Rodnitzky Ratio (L-R Ratio) is the ratio of
total query CPA divided by converting query CPA
 Use the “Filter” functionality to find all queries with at
least one conversion
 Divide the total CPA by the filtered CPA to get your
score
 A good score is generally between 1.5 to 2.0

49. Important Point #1
Google will match
your keywords to a lot
of irrelevant queries if
you give them the
latitude to do so.
This results in profit to
Google and cost to
you!

50. Match Type – Broad Match
• Match type allows marketers to control how
aggressively Google matches keywords to
queries
– Broad Match: Dragon Tattoo Poster
• Dragon Picture
• Tattoo You
• Fantasy Island
– Broad match gives Google almost total
discretion

51. Match Type – Broad Match
Modified
• Match type allows marketers to control how
aggressively Google matches keywords to
queries
– Broad Match Modified: +Dragon +Tattoo
+Poster
• Used Poster of Dragon and Tattoo
• Sell Dragon Tattoo Poster
– Broad match modified prevents synonyms

52. Match Type – Phrase Match
• Match type allows marketers to control how
aggressively Google matches keywords to
queries
– Phrase Match: “Dragon Tattoo Poster”
• Buy Dragon Tattoo Poster
• Dragon Tattoo Poster in Spanish
– Phrase match requires a complete phrase

53. Match Type – Exact Match
• Match type allows marketers to control how
aggressively Google matches keywords to
queries
– Exact Match: [Dragon Tattoo Poster]
• Dragon Tattoo Poster
– Exact match will only show the exact phrase

54. Match Type – Negative Match
• Match type allows marketers to control how
aggressively Google matches keywords to
queries
– Negative Match: -Picture
• Dragon Tattoo Poster is Ugly
• Fantasy Island Tattoo Guy
– Negative Match excludes any word or phrase

55. Important Point #2
• We recommend using:
– Broad match modified to discover new and
profitable queries
– Exact match to isolate your top performing queries
and bid accordingly
– Negative match to exclude unprofitable queries
– Broad match and phrase match rarely, if at all
• BUT WAIT – YOU NEED TO UNDERSTAND
ACCOUNT HIERARCHY FIRST!!!!

56. Basic Account Hierarchy
• Account = Billing, Time Zone,
Login Info
• Campaign = Networks, Devices,
Geography, Day-Parting
• Keywords, Ad Text

57. When Account hierarchy &
Queries Collide
• When two or more
keywords in an
account match the
same query, Google
must choose which
keyword to enter the
auction
– Keyword #1: +Dragon
+Poster
– Keyword #2: +Dragon
+Tattoo
– Query: Dragon Tattoo
Poster
Which keyword
will Google
choose?

58. Google’s Official Policy
Source:
http://adwords.google.com/support/aw/bin/answer.py?hl=en&answer=66292

59. Google’s Actual Policy
• We have observed
numerous occasions
where Google does
not follow its own
policy for matching
keywords to queries
• Translation: to truly
control keyword to
query matching, you
need to create iron-
clad account structure

60. Example of where it costs you
money to have Bad structure
 Exact match keyword with targeted ad copy and
landing page is bumped by broad match with
generic copy and LP
 Negative keyword you added to one campaign
is not included in another campaign – keyword
gets served
 Same keyword with same match type in
different campaigns but with different bids –
most expensive keyword shown
Account structure mistakes are sometimes caused by user error
and sometimes caused by Google algorithmic errors/decisions

61. Important Point #3
• Failure to carefully plan
out your account
structure will cost you
profit – I guarantee it

62.  A Beta campaign is designed to quickly identify
profitable search queries and eliminate
unprofitable ones
 An Alpha campaign is designed to isolate
profitable queries into ad groups with targeted
ad text and landing pages
 The overall objective is to take 100% control of
your keywords and queries!
The 30,000 Foot View of Alpha
Beta

63. • Step One: Create the Beta
campaign “The Bait”
– All keywords should be on
broad match modified
(+broad +match +modified)
• Step Two: Run raw search
query analysis on Beta
campaign
• Step Three: Identify
winning queries and losing
queries
Creating & Analyzing The Beta
Campaign

64. • Step Four: Create an Alpha
campaign. Move winning queries
into SKAGs in the Alpha
– SKAGs = Single Keyword Ad
Groups
– Put all Alpha queries on Exact
Match
– Create targeted ad text and
landing pages for each SKAG
• Step Five: Add all losing queries
to the Beta campaign as
Negative Exact Match
– -[free dragon tattoo poster]
Creating the Alpha Campaign,
Refining the Beta

65. • Step Six: Add all Alpha
queries to your Beta
campaign as Exact Match
Negatives!
– This prevents Google from
matching a bait keywords to
your profitable Alpha query
– You control bid, ad text, and
landing page for winners!
• Step Seven: Continue to
identify winners and losers in
the Beta campaign. Move
winners into the Alpha
The Air-Tight Account Secret

66. L-R Score – Before & After
Alpha-Beta Structure
• Before: 1.4 (June 2011)
• After: 1.84 (August 2011)
• Before: 2.93 (November 2010)
• After: 2.11 (March 2011)

67. A Virtuous Cycle
Create Beta
Test Keywords
Identify
Winner and
Loser Queries
Move
Winners to
SKAGs in
Alpha
Add Losers
*and*
Winners as
Negatives in
Beta
Identity New
Test Keywords

68.  Queries are the lifeblood of AdWords
campaigns, not keywords
 Match type is a limiter on Google’s discretion
to expand your spend
 Beta campaigns use broad match modified to
test Google’s algo; Alpha campaigns use
exact match to lock-in profit
 Use the Lin-Rodnitzky Ratio to measure
account health
Summary

69. Thank You!
david@3qdigital.com
@rodnitzky